Thursday, June 11, 2015

Florida Home Buyers and Sellers - Consider your timeline when contracting to purchase/sell

I recently had buyers close on a house where the closing date became an issue for the sellers. The seller's pending move was based upon the occupant of their next home vacating on date "X." But this was all based on moving into a new construction home that was supposed to be finished on date "Y."

As the closing date approached the sellers found out X ≠ Y.

Completion dates for newly constructed homes are not fixed in stone. Closing dates on re-sales are somewhat more predictable.

Fortunately, the buyer and seller came to an agreement on a closing date adjustment.

The Florida real estate contract contains the sentence "Time is of the essence." Perhaps "essence" would be more effective if it was replaced with "critical."

Dates will become much more critical beginning in August 2015 when the
Closing Disclosure will combine the current HUD-1 settlement and truth
in lending statements. Currently, last minute changes/delivery of the HUD-1 Settlement Statement doesn't usually completely delay the process for days.

This new Closing Disclosure
must be provided to the buyer/borrower at least three business days before closing. If changes occur this could be cause for another three day waiting
period. The key here is to make sure everyone in the process
understands the time requirements for the transaction.

I heard it said today that parties should avoid domino closings such as mentioned above as well as situations where the moving van motor is running - at least until the new system is learned.

If a mortgage is involved I would definitely recommend looking at 45 days from contract acceptance to a closing, for now.

The real estate purchase/sale process is stressful enough. Being aware of the time requirements in the contract as well as the process will make for a smoother closing. If you are new to the home buying process, just give me a call if I can help (321-693-3850).